According to research from international real estate advisor Savills, there is a significant opportunity to repurpose redundant retail space in Leeds, with retail vacancy rates in the city now reaching 17%, compared with a national average of 12%.
In its latest Yorkshire: A Region of Opportunity report, research from the firm shows that the total retail provision for Leeds equates to 3.5 million sq ft. 650,000 sq ft of this is currently vacant, of which 210,000 sq ft is considered to be a long term void (empty for 3 years or more). This provides Leeds with major opportunities to repurpose this space into much-needed alternative uses such as offices, hotels, healthcare and student accommodation.
Savills notes that in spite of the effects of Covid-19, prime retail in Leeds is continuing to show resilience. Trinity and Victoria Gate shopping centres show vacancy rates of just 3% and 6% - well below the national average owing to the major investment made into these schemes along with the ability for landlords to be flexible on lease terms. This, however, has led to the marginalisation of secondary retail pitches within the city centre, where vacancy averages 23% of units.
Josh Howe, associate director in the retail team at Savills Leeds, comments: “Recent developments attracted several new and exciting retailers into the city, and the retail and leisure fundamentals of Leeds remain strong. However, we now have an opportunity to rightsize the city’s retail offering, particularly in those secondary pitches, creating vibrant new destinations. These sorts of projects will help diversify and support the city centre vitality, and will positively impact the remaining retail as a result.”
The research from Savills goes on to show that many of the retail units in Leeds are larger than average, averaging 3,000 sq ft across the city centre compared with 2,000 sq ft nationally.
Savills adds that the upper levels of these large stores in Leeds, such as department stores, provide particularly exciting yet straightforward opportunities for redevelopment, with discussions already well underway for the repurposing of the city’s House of Fraser and Debenhams stores.
Tom Whittington, retail and leisure research director at Savills, adds: “All cities were struggling with a surplus of retail space even before the pandemic. However, we are now at a crucial stage where rightsizing the retail offering in cities such as Leeds will become hugely important in providing residents and visitors with what they need now, and in the future, bringing people into the city centre for years to come.”